India has emerged as Asia’s leading destination for cross-border real estate investment, attracting $5.5 billion in foreign capital during the first nine months of 2026. This was approximately 50% higher than the $3.7 billion invested in mainland China during the same period, according to a report by property consultancy Savills.
The growing investment reflects international institutions’ increasing interest in India’s commercial property market, particularly data centres, office buildings and development land.
The findings were published in Savills’ Capital Signals: Asia Pacific Capital Markets Q4 2026 report.
Data Centres Attract $3.9 Billion in Investment
Data centres have emerged as the biggest attraction for international real estate investors in India. The segment attracted $3.9 billion during the first nine months of 2026, nearly twice the capital deployed in the office segment.
The growing demand for data centre infrastructure is being driven by expanding cloud computing requirements, artificial intelligence workloads and digital services.
Global infrastructure operators, hyperscalers and institutional investors are increasing their presence in India. Companies such as AirTrunk and EQT have announced multi-billion-dollar development commitments, reflecting expectations of sustained demand for digital infrastructure.
The expansion of AI applications is also increasing the need for computing capacity, storage facilities and reliable power infrastructure, making data centres an important investment category.
Grade A Office Properties Offer Yields of Up to 8%
India’s commercial office market is another major factor attracting foreign investors.
According to Savills, Grade A office properties in India offer rental yields of approximately 7.75% to 8%, among the highest nominal returns in the Asia-Pacific region.
Office rentals are also increasing by around 7% to 8% annually, offering investors the possibility of additional income growth beyond initial rental yields.
Strong demand from businesses occupying premium office spaces has helped support rental growth and investor confidence.
India’s urbanisation is another long-term driver. Only around 36% of the country’s population currently lives in cities, while approximately 12 million people are added to urban populations every year.
India’s Real Estate Market Records $14.3 Billion in Transactions
India’s overall real estate transaction volume reached $14.3 billion over the past four quarters, including land acquisitions. This represented a 13% increase in dollar terms.
The broader Asia-Pacific real estate market also recorded strong growth. Regional transaction volumes approached $200 billion during the first nine months of 2026, increasing 27% year-on-year.
Data centres recorded the strongest sectoral growth at 79%, followed by retail at 36%. Office, industrial and hotel transactions each increased by approximately 22%.
Can China Regain Investor Interest?
Although India has moved ahead of China in cross-border real estate investment, Savills noted that international investors could return to the Chinese property market as valuations become more attractive.
However, concerns surrounding oversupply continue to influence investment decisions in China.
For India, the combination of growing commercial property demand, competitive rental yields, urbanisation and digital infrastructure expansion is strengthening its position in the global real estate investment market.
Summary
India attracted $5.5 billion in cross-border real estate investment during the first nine months of 2026, surpassing China’s $3.7 billion. Data centres accounted for $3.9 billion, while Grade A offices offered yields of 7.75% to 8%. Growing demand for AI infrastructure, commercial property and urban development is strengthening India’s appeal to global investors.